The European Union’s Markets in Crypto-Assets regulation, known as MiCA, is in the critical implementation phase. MiCA aims to standardize crypto regulations across the 27 EU member states to provide clarity, consumer protection, and market stability. However, challenges are arising as implementation progresses. This edition of Byte-Sized Insight delves into the current provisions of MiCA, particularly regarding stablecoins, and why some major market players are hesitant to comply. As of January 2025, crypto asset service providers (CASPs) must obtain licenses to operate legally in the EU. Existing firms have up to 18 months, depending on the member state, to adhere to the regulations. However, looming deadlines are prompting swift action from these entities. One contentious provision of MiCA pertains to stablecoins – issuers must be authorized in the EU and publish a regulator-approved white paper before offering stablecoins to EU users. Strict rules on asset reserves, governance, conflict of interest, and marketing are included, with a ban on offering interest on tokens. Tether’s USDt, the world’s most widely used stablecoin, has announced it will not seek MiCA compliance, potentially leading to its delisting across the EU, impacting liquidity, retail access, and DeFi activity in the region. Other firms, like BitGo, are embracing compliance and have secured MiCA-aligned licenses in Germany to cater to institutional players across Europe. Compliance is seen as crucial for strategic alignment with evolving regulatory frameworks. Erwin Voloder, from the European Blockchain Association, stresses the importance of consistent national-level interpretation and clearer guidance from regulators to prevent fragmentation. For a detailed discussion, listen to the full episode of Byte-Sized Insight on Cointelegraph’s Podcasts page, Apple Podcasts, or Spotify. Explore Cointelegraph’s range of shows and stay informed.